Here's Why 'Loud Budgeting' Trend has Replaced 'Quiet Luxury' on Social Media in the New Year

The “quiet luxury” trend may have dominated social media in 2023 but it has now been replaced by “loud budgeting,” as young people try to manage expenses after holiday season. The new trend is a pushback to its old counterpart, which focused on elegance without overt display of wealth. The “loud budgeting” trend focuses on talking about money goals with friends, family, and across social media to prioritize financial goals unapologetically.

The term went viral on TikTok at the beginning of 2024. It encourages users to save unspent funds and use them wisely by making investments or through high-yielding savings accounts. It motivates people to meet their financial goals by being accountable to family and friends. Thus, the trend encourages healthy financial habits and that’s why finance experts can’t get enough of the latest TikTok trend.

What is loud budgeting?

Loud budgeting is a money-saving technique promoted on TikTok that involves declining expensive social events such as grabbing dinner with a friend or going to that destination wedding if they hurt a person’s financial well-being or put them at risk. The financial strategy puts people’s money aspirations at the front and center for everyone to see. It encourages people to assert their goals and be vocal about what they may not choose to spend money on. As part of this trend, people knowing each other’s goals help the other in staying accountable. It further allows people to stay guilt-free from declining social invitations that cost money. Thus, the idea of loud budgeting is to simply empower more people to be comfortable with speaking up about financial goals in the public domain.

Loud budgeting has become a viral trend on social media. Influencers from across the world are creating content on it, offering scripts for different scenarios to help people stay on track to their goals. Influencers are also pitching goal suggestions to help people manage their savings better One such example is creator Jenny Park’s latest TikTok.

Tips for practicing loud budgeting

While loud budgeting discourages spending on social experiences, it shouldn’t prevent people from spending on experiences that matter to them. Further, small compromises can also work towards effective budgeting. For instance, if someone spends a night out with friends, they may decide to not order something expensive or skip the drinks/expensive desserts to save money while spending quality time. This is easier to do if the person’s friends are aware of the financial goal and budgeting commitments made by the person.

Loud budgeting is effective in framing budgets, and financial goals. It does work as it allows people to take positive action towards their goals. Elizabeth Schwab, Program Chair of the Behavioral Economics and Business Psychology Divisions at The Chicago School says that the trend de-stigmatizes what many Americans feel and experience. However, the expert also points out that people need to strike a balance between putting money first and doing activities that bring joy to their lives. Declining the social invites can take a toll on people both socially and emotionally, says Schwab.